Prime Minister Nguyen Xuan Phuc issued Decision No. 32 / QD-TTG on January 7 approving a scheme on the establishment of the Vietnam Stock Exchange, with aim of unifying the stock market and ensuring efficient, fair, open and transparent activities.

The VSE will be headquartered in Hanoi and operate as a one-member limited liability company wholly owned by the State. The Ministry of Finance will be the representative of State capital.

The Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HSX) will become its subsidiaries, with 100 percent of capital invested by the VSE, but will both operate independently.

Under the newly-approved plan, the VSE is tasked with issuing regulations on stock listings and transactions, supervising HNX and HSX, and monitoring the stock market.

It will also act as an intermediary when disputes relating to stock transactions occur and cooperate with foreign partners in securities.

Its establishment will be carried out under a two-phase roadmap to ensure that the market remains stable and continuously operating, specifically:

Phase 1 from 2019 to 2020:

Establish the VSE, continue to maintain HNX and HSX;

Unify the organizational apparatus of the VSE, rearrange the organizational apparatus of HNX and HSX;

Complete the project building a market information technology system, in which HSX is an investor, to upgrade the modernization of information technology for the market.

Phase 2 from 2020 to 2023:

Put the market information technology system into operation, applicable to HNX and HSX, then implement the market segmentation roadmap;